Undead Labs Becomes Employee-Owned After Xbox Separation and Confirms State of Decay 3 Is Still In Development
The studio is now employee-owned and says State of Decay 3 remains in alpha with a closed beta planned before year-end.
- On Tuesday, Undead Labs officially completed its separation from Microsoft, becoming a fully independent, employee-owned game development studio after more than 15 years under Xbox ownership.
- This separation follows Xbox's ongoing "major reset," a restructuring that divested from several studios including Double Fine and Compulsion Games, which successfully separated last month.
- Undead Labs confirmed active development of its zombie survival game, currently in alpha with a closed beta planned before year-end and a full release in 2027 on Xbox, Game Pass, and PlayStation.
- The title will remain on Game Pass despite the separation, a decision fans on Reddit praised as a "double win" that lets developers maintain independence while subscribers retain access.
- In contrast, Xbox confirmed on Tuesday that two acquisition deals for Hellblade developer Ninja Theory fell through, leaving the studio in the process of closing down.
17 Articles
17 Articles
Undead Labs Becomes Employee-Owned After Xbox Separation and Confirms State of Decay 3 Is Still In Development
Undead Labs has confirmed that State of Decay 3 is still in development after the studio separated from Xbox, becoming an independent, employee-owned developer.
State of Decay 3 remains one of the most important commitments for Xbox fans. The ambitious Zombie Survival game is scheduled to be released directly on Xbox Game Pass in 2027. Microsoft has re-confirmed this plan, although Entwickler Undead Labs has now completed its separation from the Group. Confirmation removes a key uncertainty that has been resolved since the [...]
Under Labs has separated from Microsoft to become an independent studio and is now being held by its own staff. Despite this great change, State of Decay 3 keeps the launch window marked for 2027 and has arrived at the Xbox Game Pass right on the first day. Read more
State of Decay 3 plans to launch a closed beta before the end of the year and will launch in 2027 one day on Xbox Game Pass, confirms Undead Labs after consolidating its independence from Xbox.
Coverage Details
Bias Distribution
- 67% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
